Casey Hudson explained today how the saved data from Mass Effect 1 will work in Mass Effect 2, in a article from PC World. Apparently what you did in Mass Effect 1 will greatly effect what happens and what you do in the new Mass Effect.

"When you're playing the first game, everything that you do is setting a variable so that as the story progresses we know that you did a certain thing on a certain planet, and then internal to the game, we can reference those things," Hudson explained. "Your Mass Effect save game contains all of that information. When you import it into Mass Effect 2, now we can continue mining all that information."

The information pertains not just to what your ending was, but to "literally hundreds of things," Hudson said. "Anytime we have a plot or a character or situation in Mass Effect 2, we think about what you did, potentially, in the first game that might affect said plot or character or situation in the second. We can look at each variable and dynamically change what happens in the moment."

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